Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/339060 
Year of Publication: 
2025
Series/Report no.: 
LEM Working Paper Series No. 2025/36
Publisher: 
Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM), Pisa
Abstract: 
We study how monetary policy shapes firm-level carbon emissions by exploiting the ECB's 2012 entry into the zero lower bound as a plausibly exogenous credit easing. Using administrative and survey data on French manufacturing firms from 2000-2019 and a difference-in-differences design with debt-to-asset ratios as exposure, we show that financially constrained firms cut emissions 9.4% more than unconstrained ones, primarily through lower energy intensity and capital-deepening productivity gains. Small and medium enterprises drive the results. Aggregating our estimates implies average annual reductions of 3.3%, amounting to 5.3 million tonnes of CO₂ saved.
Subjects: 
Financial constraints
credit supply
firm-level carbon emissions
climate policies
JEL: 
Q52
Q48
D22
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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